The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. \[\begin{array} { | c | c | } \hline \text { Labour per unit of time } & \text { Total output } \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 75 \\ \hline 3 & 175 \\ \hline 4 & 250 \\ \hline 5 & 305 \\ \hline \end{array}\] TABLE 7- 4 -Refer to Table 7- 4.The average total cost of producing 75 units of output is

A) $0.80. B) $1. C) $2. D) $1.33. E) $0.67. A) $0.80. B) $1. C) $2. D) $1.33. E) $0.67.

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. \[\begin{array} { | c | c | } \hline \text { Labour per period } & \text { Total output per period } \\ \hline 0 & 0 \\ \hline 1 & 10 \\ \hline 2 & 30 \\ \hline 3 & 90 \\ \hline 4 & 132 \\ \hline 5 & 150 \\ \hline \end{array}\] TABLE 7- 3 -Refer to Table 7- 3.The average total cost when producing 150 units of output is approximately

A) 33 cents. B) 40 cents. C) $1.50. D) 80 cents. E) 67 cents. A) 33 cents. B) 40 cents. C) $1.50. D) 80 cents. E) 67 cents.

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. \[\begin{array} { | c | l | } \hline \text { Lab our per period } & \text { Total output per period } \\ \hline 0 & 0 \\ \hline 1 & 10 \\ \hline 2 & 30 \\ \hline 3 & 90 \\ \hline 4 & 132 \\ \hline 5 & 150 \\ \hline \end{array}\] TABLE 7- 3 -Refer to Table 7- 3.If this firm is producing 111 units of output per period,its marginal cost is

A) 76 cents. B) 38 cents. C) 24 cents. D) $1.00. E) 16.7 cents. A) 76 cents. B) 38 cents. C) 24 cents. D) $1.00. E) 16.7 cents.

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. \[\begin{array} { | l | c | } \hline \text { Labour per unit of time } & \text { Total output } \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 75 \\ \hline 3 & 175 \\ \hline 4 & 250 \\ \hline 5 & 305 \\ \hline \end{array}\] TABLE 7- 4 -Refer to Table 7- 4.The marginal product of labour curve intersects the average product of labour curve from above when the firm changes the amount of labour per unit of time from

A) 0 to 1 units. B) 1 to 2 units. C) 2 to 3 units. D) 3 to 4 units. E) 4 to 5 units. A) 0 to 1 units. B) 1 to 2 units. C) 2 to 3 units. D) 3 to 4 units. E) 4 to 5 units.

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. \[\begin{array} { | c | l | } \hline \text { Lab our per period } & \text { Total output per period } \\ \hline 0 & 0 \\ \hline 1 & 10 \\ \hline 2 & 30 \\ \hline 3 & 90 \\ \hline 4 & 132 \\ \hline 5 & 150 \\ \hline \end{array}\] TABLE 7- 3 -Refer to Table 7- 3.If this firm is producing 20 units of output per period its marginal cost is

A) 16.7 cents. B) $10.00. C) 50 cents. D) $1.67. E) $1.00. A) 16.7 cents. B) $10.00. C) 50 cents. D) $1.67. E) $1.00.

Exam 7: Producers in the Short Run

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. Labour per unit of time Total output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7- 4 -Refer to Table 7- 4.The average total cost of producing 75 units of output is

(Multiple Choice)

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Question 61

A firm's short- run cost curves,as conventionally drawn,show that

(Multiple Choice)

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Question 62

Which of the following statements about the organization of firms is true?

(Multiple Choice)

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Question 63

Which of the following statements is NOT true of a corporation?

(Multiple Choice)

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Question 64

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. Labour per period Total output per period 0 0 1 10 2 30 3 90 4 132 5 150 TABLE 7- 3 -Refer to Table 7- 3.The average total cost when producing 150 units of output is approximately

(Multiple Choice)

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Question 65

Suppose a firm with the usual U- shaped cost curves is producing a level of output such that its short run costs are as follows: ATC = $0.37 per unit AVC = $0.32 per unit AFC = $0.05 per unit MC = $0.43 per unit Given these short run costs,which of the following statements is true?

(Multiple Choice)

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Question 66

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. Lab our per period Total output per period 0 0 1 10 2 30 3 90 4 132 5 150 TABLE 7- 3 -Refer to Table 7- 3.If this firm is producing 111 units of output per period,its marginal cost is

(Multiple Choice)

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Question 67

"An objective of firms is to maximize profits." This statement

(Multiple Choice)

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Question 68

The opportunity cost of money that a firm's owner has invested in the firm is an example of

(Multiple Choice)

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Question 69

It is assumed in standard economic theory that a firm makes decisions in an effort to

(Multiple Choice)

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Question 70

Consider a firm's short- run cost curves.Which one of the following types of cost declines over the whole range of output?

(Multiple Choice)

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Question 71

Suppose that a firm's capital is fixed and one more unit of labour is hired,thereby increasing the firm's total output.Which of the following statements can be correct? 1.Marginal cost would remain constant. 2.Marginal cost would increase. 3.Marginal cost would decrease.

(Multiple Choice)

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Question 72

Consider a house- construction firm with fixed capital.The firm can build 8 houses per year with 16 workers and 8.8 houses per year with 17 workers.If it is currently building 8.8 houses per year,which of the following is true?

(Multiple Choice)

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Question 73

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. Labour per unit of time Total output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7- 4 -Refer to Table 7- 4.The marginal product of labour curve intersects the average product of labour curve from above when the firm changes the amount of labour per unit of time from

(Multiple Choice)

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Question 74

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. Lab our per period Total output per period 0 0 1 10 2 30 3 90 4 132 5 150 TABLE 7- 3 -Refer to Table 7- 3.If this firm is producing 20 units of output per period its marginal cost is

(Multiple Choice)

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Question 75

Which of the following factors of production is most likely to be variable in the short run?

(Multiple Choice)

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Question 76

Consider a basket- producing firm with fixed capital.If the firm can produce 36 baskets per day with 3 workers and then increases productivity to 44 baskets per day with 4 workers,then which of the following statements is true?

(Multiple Choice)

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Question 77

Consider a firm's short- run cost curves.When capital is a fixed factor,a rise in the cost of labour

(Multiple Choice)

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Question 78

Suppose a production function for a firm takes the following algebraic form: Q = 2KL - (0.2)L2,where Q is the output of sweaters per day.Now suppose the firm is operating with 8 units of capital (K=8)and 10 units of labour (L=10).What is the output of sweaters?

(Multiple Choice)

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Question 79

If a firm uses factor inputs that are personally owned by the firm's owner,then economists refer to the opportunity cost of these inputs as

(Multiple Choice)

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Question 80

Showing 61 - 80 of 114

A firm's short- run cost curves,as conventionally drawn,show that

Which of the following statements about the organization of firms is true?

Which of the following statements is NOT true of a corporation?

Suppose a firm with the usual U- shaped cost curves is producing a level of output such that its short run costs are as follows: ATC = $0.37 per unit AVC = $0.32 per unit AFC = $0.05 per unit MC = $0.43 per unit Given these short run costs,which of the following statements is true?

"An objective of firms is to maximize profits." This statement

The opportunity cost of money that a firm's owner has invested in the firm is an example of

It is assumed in standard economic theory that a firm makes decisions in an effort to

Consider a firm's short- run cost curves.Which one of the following types of cost declines over the whole range of output?

Suppose that a firm's capital is fixed and one more unit of labour is hired,thereby increasing the firm's total output.Which of the following statements can be correct? 1.Marginal cost would remain constant. 2.Marginal cost would increase. 3.Marginal cost would decrease.

Consider a house- construction firm with fixed capital.The firm can build 8 houses per year with 16 workers and 8.8 houses per year with 17 workers.If it is currently building 8.8 houses per year,which of the following is true?

Which of the following factors of production is most likely to be variable in the short run?

Consider a basket- producing firm with fixed capital.If the firm can produce 36 baskets per day with 3 workers and then increases productivity to 44 baskets per day with 4 workers,then which of the following statements is true?

Consider a firm's short- run cost curves.When capital is a fixed factor,a rise in the cost of labour

Suppose a production function for a firm takes the following algebraic form: Q = 2KL - (0.2)L2,where Q is the output of sweaters per day.Now suppose the firm is operating with 8 units of capital (K=8)and 10 units of labour (L=10).What is the output of sweaters?

If a firm uses factor inputs that are personally owned by the firm's owner,then economists refer to the opportunity cost of these inputs as

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